This is because you can no longer be sure of the quality of your water. Besides the pollution affecting water and sewage systems, there is also the danger of microbes which can be extremely harmful to your body. But setting up a water treatment system is not an easy feat as you might think. The work doesn't simply involve adding water filters into your pipes.
Definition of 'Capitalization Rate'. Definition: Capitalization rate, commonly known as cap rate, is a rate that helps in evaluating a real estate investment. Description: Capitalization rate shows the potential rate of return on the real estate investment. The higher the capitalization rate, the better it is for the investor.
Capitalization is the recordation of a cost as an asset, rather than an expense. This approach is used when a cost is not expected to be entirely consumed in the current period, but rather over an extended period of time.apitalization is also based on the concept of materiality. If a cost is too small, it is charged to expense at once, rather than bothering with a series of accounting calculations and journal entries to capitalize it and then gradually charge it to expense over time.